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Xi Jinping and Vladimir Putin pledge to develop even closer ties between China and Russia in energy and finance
China and Russia pledged on Thursday to build even closer ties in their energy and financial sectors and extract more benefits from their partnership in other areas, underlining their mutual dependence in the face of Western sanctions.
Both countries plan greater cooperation in oil, natural gas, liquefied natural gas, coal, electricity and other fields “in accordance with market principles”, according to a joint statement released after Chinese President Xi Jinping’s meeting. with his Russian counterpart, Vladimir Putin, in Beijing.
The leaders committed to ensuring the stable functioning of cross-border infrastructure for the unimpeded transportation of energy.
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Chinese and Russian companies will also seek to implement major energy projects and build cooperation in areas such as renewable energy, hydrogen and carbon markets, the statement added.
Expanding this cooperation will reinforce an already solid mutual economic trust. Last year, record bilateral trade of $240 billion provided an important lifeline for Russia, which has been under widespread sanctions from Western countries since it invaded Ukraine in 2022.
For China, Russia is its biggest source of crude oil imports, as well as a major destination for Chinese electric vehicles – which are themselves the target of European probes and US tariffs.
Maxim Kuznetsov, chairman of the Russian-Asian Business Council, said both countries still need develop conditions for major energy projects which remain in protracted negotiations, including the signature pipeline, Power of Siberia 2.
“This project is crucial for Russian-Chinese energy cooperation, but there are many issues that the Russian and Chinese parties need to resolve first,” he said.
“Negotiations are complicated due to the price and configuration of the project. Furthermore, the question is how much each side needs to invest in this project.”
Kuznetsov noted that there are no signs that the pipeline deal will be finalized soon.
To help reduce the impact of Western sanctions, Xi and Putin said they would increase the use of their currencies in bilateral trade, financing and other economic activities and improve financial infrastructure to facilitate settlement channels.
The Kremlin previously said that more than 90% of commercial transactions between China and Russia were already settled in yuan or rubles.
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Both also said they would promote the use of local currency settlement, payment tools and platforms for trade and business among other member countries of the BRICS economic association.
Putin and Xi at the gala event in Beijing celebrating the 75th anniversary of China-Russia relations on Thursday. Photo: Sputnik via Reuters alt=Putin and Xi at the gala event in Beijing celebrating the 75th anniversary of China-Russia relations on Thursday. Photo: Sputnik via Reuters>
Regarding new areas of cooperation, the statement states that China and Russia will increase their efforts in a wide range of industries, in sectors such as civil aviation, shipbuilding, automobile and equipment manufacturing, electronics, metallurgy, ore mining iron, chemicals and forestry.
Other areas of cooperation, the statement said, are areas ripe for innovation, including artificial intelligence, software, open source, network and data security, electronic games, radio frequency coordination, professional education and professional scientific research.
The statement also mentioned services, including e-commerce, digital economy and sustainable development, and secure supply chains.
Both countries said they would also explore opening new sea routes in the Arctic region.
This article originally appeared on South China Morning Post (SCMP), the most trusted voice reporting on China and Asia for more than a century. For more SCMP stories, explore the SCMP Application or visit SCMP Facebook It is Twitter Pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
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